denton, I think investors have gotten over the issues with the SEC civil suit. The reason it’s down today is the onslaught of additional suits bothe civil and, potentially a criminal suit in NYS.
On your first point, the deal was sold to investors. Paulson went short the underlying securities in the deal after the deal was done.
Both GS and paulson had long and short positions in the securities in doing the deal. Most institutional trades involve the broker shorting the securities to the institution. The Senators were quibbling on how long GS was going to remain short the securities.
But the Abacus private placement ITSELF could not be shorted. If teh investors didn’t want a long position in those securites they didn’t have to buy the deal
Quote:
“The real problem is that Goldman pretended it was designing a deal for folks who wished to go long the underlying collateral, when in truth it was doing the opposite.”
That’s my point at 2:56, and there are other Wall Street people who feel the same way, including, apparently, investors. GS down 9.47%.
and until someone accuses paulson of have insider info on the underlying securities, who cares who chose the securities as long as the basket of securities are LOCKED prior to the SHORTS and LONGS review and place their bets. This is quite different than that 1 lady senator who equate this to a football player setting line on 1 of his games and that diff is the football player has ability and oppty to tank the game on purpose so his bet against his team pays out. vs Paulson has no influence on perf of those securities (pre or post place bet)
Sure lechecal. No one in New York understands anything except cab drivers and investment bankers. But as I said earlier, BS wouldn’t touch it either. What did GS know that BS didn’t? And of course no one at any investment bank did anything wrong to cause the financial crisis. It was all a bunch of condo flippers in Las Vegas.
But I’m willing to listen to why the SEC is wrong, irrespective of what they do with their time (maybe they too read Brownstoner all day)
Lechacal, the more regular people understand what and why banks do what they do, perceptions improve so I say us discussing it now in a RE Blog is helping vs hurting GS.
But I think eveyone else is thinking the same thing so maybe go in at $125 or so.
We will initaite a position in GS when it reaches Book Value…$117.
denton, I think investors have gotten over the issues with the SEC civil suit. The reason it’s down today is the onslaught of additional suits bothe civil and, potentially a criminal suit in NYS.
On your first point, the deal was sold to investors. Paulson went short the underlying securities in the deal after the deal was done.
Both GS and paulson had long and short positions in the securities in doing the deal. Most institutional trades involve the broker shorting the securities to the institution. The Senators were quibbling on how long GS was going to remain short the securities.
But the Abacus private placement ITSELF could not be shorted. If teh investors didn’t want a long position in those securites they didn’t have to buy the deal
So they used the GS brand to give comfort to the investors and now that brand isn’t as atractive, therefore stock price down.
“http://seekingalpha.com/article/199697-paulson-goldman-and-the-institutional-investor-s-right-to-be-stupid”
tiny:
http://tinyurl.com/y4gpq8f
Quote:
“The real problem is that Goldman pretended it was designing a deal for folks who wished to go long the underlying collateral, when in truth it was doing the opposite.”
That’s my point at 2:56, and there are other Wall Street people who feel the same way, including, apparently, investors. GS down 9.47%.
and until someone accuses paulson of have insider info on the underlying securities, who cares who chose the securities as long as the basket of securities are LOCKED prior to the SHORTS and LONGS review and place their bets. This is quite different than that 1 lady senator who equate this to a football player setting line on 1 of his games and that diff is the football player has ability and oppty to tank the game on purpose so his bet against his team pays out. vs Paulson has no influence on perf of those securities (pre or post place bet)
Good point, jessi. Someone should be suing the buyers’ lawyers for this if it was so wrong!!!!!
Sure lechecal. No one in New York understands anything except cab drivers and investment bankers. But as I said earlier, BS wouldn’t touch it either. What did GS know that BS didn’t? And of course no one at any investment bank did anything wrong to cause the financial crisis. It was all a bunch of condo flippers in Las Vegas.
But I’m willing to listen to why the SEC is wrong, irrespective of what they do with their time (maybe they too read Brownstoner all day)
Lechacal, the more regular people understand what and why banks do what they do, perceptions improve so I say us discussing it now in a RE Blog is helping vs hurting GS.